9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 72 - AAR - GSTValidity of Advance Ruling application obtained - matter was alreay pending before DG GST Intelligence - suppression of material facts or not - HELD THAT - Section 98(2) of the CGST/TGST Act, 2017 states that Authority for Advance Ruling shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act. Therefore the application was liable to be rejected under Section 98(2) of the CGST/TGST Act, 2017. Taxpayer has not brought the issue to the notice of the Authority for Advance Ruling at any stage of the Advance Ruling proceedings including at the time of the personal hearing dated 28.06.2022. Therefore the applicant has obtained the Advance Ruling by suppressing the facts and hence the Order issued is liable to be declared as void ab initio. The Order is declared as void ab initio as per section 104(1) of CGST/TGST Act, 2017 and thereupon all the provisions of CGST/TGST Act, 2017 or the rules made thereunder shall apply to the applicant as if such advance ruling had never been made.
Issues involved:
The issues involved in the judgment are the validity of an Advance Ruling obtained by suppression of material facts and the application of Section 98(2) of the CGST/TGST Act, 2017 in rejecting an application. Validity of Advance Ruling: The Authority for Advance Ruling of Telangana State found that the applicant, M/s. Srico Projects Pvt Ltd, had raised a question in an Advance Ruling application that was already pending before the Directorate General of GST Intelligence, Hyderabad Zonal Unit. The Authority opined that the applicant obtained the Advance Ruling by suppressing this material fact, leading to the ruling being declared as void ab initio under Section 104(1) of the CGST Act, 2017. A notice was issued to the applicant for a personal hearing, but they failed to attend, resulting in the Order being declared void. Application of Section 98(2) of the CGST/TGST Act, 2017: The investigation on M/s. Srico Projects Pvt. Ltd. was initiated by the DGGI on 15/12/2021 for adopting a GST rate of 12% instead of 18% for certain works contract services. This issue was raised in the Advance Ruling application dated 24.06.2022, which was submitted after the investigation had commenced. The Authority for Advance Ruling found that the applicant had not disclosed this fact at any stage of the proceedings, leading to the ruling being obtained by suppression of material facts. Consequently, the Order issued in reference was declared as void ab initio under Section 104(1) of the CGST/TGST Act, 2017. Conclusion: In light of the above discussion, the Order issued in the reference was declared as void ab initio under Section 104(1) of the CGST/TGST Act, 2017. This decision implies that all provisions of the Act or rules made thereunder shall apply to the applicant as if the Advance Ruling had never been made.
|
